* U.S. data generally positive
* Euro hits 3-week low of $1.0650
* Investors look to U.S. jobs report on Friday
(Recasts, updates prices, adds comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 3 The dollar fell against the
Japanese yen and euro on Monday, as uncertainty about U.S.
congressional support for President Donald Trump's choice for
Supreme Court justice revived doubts about his ability to
fulfill his economic agenda.
"The more you see the lack of achievement on the part of the
administration with respect to its campaign goals, the rougher
it's going to be for the dollar," said Joe Trevisani, chief
market strategist, at WorldWide Markets in Woodcliff, New
"If we see the administration not able to advance the
Supreme Court nomination, then it means down the road that it is
not likely to achieve its goals on trade, on tax reform, and the
possible stimulus. That would hurt dollar," he added.
Democrats on Monday amassed enough support to block a U.S.
Senate confirmation vote on Trump's Supreme Court nominee, Neil
Gorsuch, but Republicans vowed to change Senate rules to ensure
the conservative judge gets the lifetime job.
The new administration suffered a major political setback in
March after Trump's Republican party withdrew its own healthcare
bill after years of promising to repeal former President Barack
Obama's signature law. The dollar fell early last week in the
aftermath before turning higher.
In afternoon trading, the dollar fell 0.4 percent against
the yen to 110.90.
Monday's U.S. construction spending and manufacturing data
was positive overall, affirming the economy's steady
Construction spending grew 0.8 percent to $1.19 trillion,
the highest level since April 2006. A measure of U.S.
manufacturing activity eased from a 2-1/2-year high in March,
although a surge in factory jobs suggested that the sector's
energy-led recovery was gaining momentum.
Markets are focused this week on the U.S. non-farm payrolls
report due Friday for clues on the likely pace of interest rate
Investors are pricing in more than a 50 percent chance the
U.S. Federal Reserve will hike rates at its June meeting, the
second of the three increases expected this year.
The euro rose 0.2 percent versus the greenback to $1.0670
, after hitting a three-week low as mixed economic data
coming out of Europe added to existing worries about political
risk in the euro zone.
Despite increasing activity at the fastest rate in nearly
six years, euro zone factories struggled to keep up with demand
in March, according to a survey that showed them again hiking
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Bernadette
Baum and Richard Chang)